CHAPTER 9. DEPOSIT AND INVESTMENT POWERS
IC 5-13-9
Chapter 9. Deposit and Investment Powers
IC 5-13-9-1
Investment powers; funds that may be invested
Sec. 1. (a) Except as provided in subsection (b), in addition to any
other statutory power to make investments, each county treasurer and
each fiscal officer of any political subdivision other than a county,
under the guidelines established, respectively, by the board of county
commissioners of each county and the fiscal body of any other
subdivision, and any other officer of a local government entity
authorized by statute or court order to make investments, may invest
any funds held by each in accordance with this chapter.
(b) The treasurer of state may invest funds under section 2.5 of
this chapter.
(c) The funds that may be invested under this chapter include
money raised by bonds issued for a future specific purpose, sinking
funds, depreciation reserve funds, gift, bequest or endowment, and
any other funds available for investment.
As added by P.L.19-1987, SEC.11. Amended by P.L.18-1996,
SEC.11; P.L.134-1999, SEC.1; P.L.220-2003, SEC.1.
IC 5-13-9-2
Investment of funds held in securities; cost in excess of par;
protecting interest in funds invested; legal custodians; safekeeping
receipts
Sec. 2. (a) Each officer designated in section 1 of this chapter may
invest or reinvest any funds that are held by the officer and available
for investment in any of the following:
(1) Securities backed by the full faith and credit of the United
States Treasury or fully guaranteed by the United States and
issued by any of the following:
(A) The United States Treasury.
(B) A federal agency.
(C) A federal instrumentality.
(D) A federal government sponsored enterprise.
(2) Securities fully guaranteed and issued by any of the
following:
(A) A federal agency.
(B) A federal instrumentality.
(C) A federal government sponsored enterprise.
(3) Municipal securities issued by an Indiana local
governmental entity, a quasi-governmental entity related to the
state, or a unit of government, municipal corporation, or special
taxing district in Indiana, if the issuer has not defaulted on any
of the issuer's obligations within the twenty (20) years
preceding the date of the purchase.
(b) If an investment under subsection (a)(1) is made at a cost in
excess of the par value of the securities purchased, any premium paid
for the securities shall be deducted from the first interest received
and returned to the fund from which the investment was purchased,
and only the net amount is considered interest income.
(c) The officer making the investment may sell any securities
acquired and may do anything necessary to protect the interests of
the funds invested, including the exercise of exchange privileges
which may be granted with respect to maturing securities in cases
where the new securities offered in exchange meet the requirements
for initial investment.
(d) The investing officers of the political subdivisions are the
legal custodians of securities under this chapter. They shall accept
safekeeping receipts or other reporting for securities from:
(1) a duly designated depository as prescribed in this article; or
(2) a financial institution located either in or out of Indiana
having custody of securities with a combined capital and
surplus of at least ten million dollars ($10,000,000) according
to the last statement of condition filed by the financial
institution with its governmental supervisory body.
(e) The state board of accounts may rely on safekeeping receipts
or other reporting from any depository or financial institution.
(f) In addition to any other investments allowed under this
chapter, an officer of a conservancy district located in a city having
a population of more than four thousand six hundred fifty (4,650) but
less than five thousand (5,000) may also invest in
(1) municipal securities and
(2) equity securities;
having a stated final maturity of any number of years or having no
stated final maturity. The total investments outstanding under this
subsection may not exceed twenty-five percent (25%) of the total
portfolio of funds invested by the officer of a conservancy district.
However, an investment that complies with this subsection when the
investment is made remains legal even if a subsequent decrease in
the total portfolio invested by the officer of a conservancy district
causes the percentage of investments outstanding under this
subsection to exceed twenty-five percent (25%).
(g) In addition to any other investments allowed under this
chapter, a clerk-treasurer of a town with a population of more than
six thousand three hundred (6,300) but less than ten thousand
(10,000) located in a county having a population of more than one
hundred thousand (100,000) but less than one hundred five thousand
(105,000) may also invest money in a host community agreement
future fund established by ordinance of the town in
(1) municipal securities and
(2) equity securities;
having a stated final maturity of any number of years or having no
stated final maturity. The total investments outstanding under this
subsection may not exceed twenty-five percent (25%) of the total
portfolio of funds invested by the clerk-treasurer of a town. However,
an investment that complies with this subsection when the
investment is made remains legal even if a subsequent decrease in
the total portfolio invested by the clerk-treasurer of a town causes the
percentage of investments outstanding under this subsection to
exceed twenty-five percent (25%).
As added by P.L.19-1987, SEC.11. Amended by P.L.67-1989, SEC.1;
P.L.72-1995, SEC.4; P.L.18-1996, SEC.12; P.L.54-1999, SEC.1;
P.L.212-1999, SEC.1; P.L.170-2002, SEC.14; P.L.220-2003, SEC.2;
P.L.115-2010, SEC.6.
IC 5-13-9-2.4
Repealed
(Repealed by P.L.220-2003, SEC.6.)
IC 5-13-9-2.5
Permitted investments; limitations
Sec. 2.5. (a) An officer designated in section 1 of this chapter may
invest or reinvest funds that are held by the officer and available for
investment in investments commonly known as money market
mutual funds that are in the form of securities of or interests in an
open-end, no-load, management-type investment company or
investment trust registered under the provisions of the federal
Investment Company Act of 1940, as amended (15 U.S.C. 80a et
seq.).
(b) The investments described in subsection (a) shall be made
through depositories designated by the state board of finance as
depositories for state deposits under IC 5-13-9.5.
(c) The portfolio of an investment company or investment trust
described in subsection (a) must be limited to the following:
(1) Direct obligations of the United States.
(2) Obligations issued by any of the following:
(A) A federal agency.
(B) A federal instrumentality.
(C) A federal government sponsored enterprise.
(3) Repurchase agreements fully collateralized by obligations
described in subdivision (1) or (2).
(d) The form of securities of or interests in an investment
company or investment trust described in subsection (a) must be
rated as one (1) of the following:
(1) AAAm, or its equivalent, by Standard and Poor's
Corporation or its successor.
(2) Aaa, or its equivalent, by Moody's Investors Service, Inc. or
its successor.
(e) The form of securities in an investment company or
investment trust described in subsection (a) is considered to have a
stated final maturity of one (1) day.
(f) The state board of accounts may rely on transaction
confirmations evidencing ownership of the form of securities of or
interests in an investment company or investment trust described in
subsection (a).
As added by P.L.134-1999, SEC.3. Amended by P.L.115-2010,
SEC.7.
IC 5-13-9-3
Repurchase agreements; funds held by officer and available for
investment; obligations held as collateral
Sec. 3. (a) As used in this section, "repurchase agreement" means
an agreement:
(1) involving the purchase and guaranteed resale of securities
between two (2) parties; and
(2) that may be entered into for a fixed term or arranged on an
open or a continuing basis as a continuing contract that:
(A) operates like a series of overnight repurchase
agreements;
(B) is renewed each day with the repurchase rate and the
amount of funds invested determined daily; and
(C) for purposes of this article, is considered to have a stated
final maturity of one (1) day.
(b) Each officer designated in section 1 of this chapter may enter
into, with any funds that are held by the officer and available for
investment, repurchase agreements:
(1) with depositories designated by the state board of finance as
depositories for state deposits under IC 5-13-9.5; and
(2) involving the political subdivision's purchase and
guaranteed resale of any interest-bearing obligations:
(A) issued; or
(B) fully insured or guaranteed;
by the United States, a United States government agency, an
instrumentality of the United States, or a federal government
sponsored enterprise.
The depository shall determine daily that the amount of money in
this type of agreement must be fully collateralized by interest-bearing
obligations as determined by their current market value. The
collateral for this type of agreement is not subject to the provisions
of section 2(c) of this chapter.
(c) If the market value of the obligations being held as collateral
falls below the level required under subsection (b) or a higher level
established by agreement, the depository shall deliver additional
securities to the political subdivision to make the agreement
collateralized to the applicable level. The collateral involved in a
repurchase agreement entered into under this section is not subject
to the maturity limitation provided in section 5.6 of this chapter.
(d) A political subdivision may invest in repurchase agreements
without entering into a contract under IC 5-13-11 for an investment
cash management system.
As added by P.L.19-1987, SEC.11. Amended by P.L.49-1988, SEC.1;
P.L.41-1996, SEC.1; P.L.18-1996, SEC.13; P.L.46-1997, SEC.10;
P.L.134-2000, SEC.1.
IC 5-13-9-3.3
Investment of funds in obligations issued, assumed, or guaranteed
by International Bank for Reconstruction and Redevelopment or
African Development Bank
Sec. 3.3. Each officer designated in section 1 of this chapter may
invest or reinvest any funds that are held by the officer and available
for investment in obligations issued, assumed, or guaranteed by the
International Bank for Reconstruction and Redevelopment or the
African Development Bank.
As added by P.L.18-1996, SEC.14.
IC 5-13-9-3.5
Investment and reinvestment of funds; participation in loans;
lending securities
Sec. 3.5. (a) The fiscal officer of a political subdivision or county
treasurer that is located in a county containing a consolidated city
may invest or reinvest any funds that are held by the fiscal officer or
the county treasurer and that are available for investment in
participations in loans. However, funds may be invested or
reinvested in a participation in loans under this subsection only under
the following conditions:
(1) The principal of the participation in loans must be
guaranteed by an agency or instrumentality of the United States
government.
(2) The participation in loans must be represented by a
certificate issued by a bank that is:
(A) incorporated under the laws of Indiana, another state, or
the United States; and
(B) insured by the Bank Insurance Fund of the Federal
Deposit Insurance Corporation.
(b) Funds may be invested or reinvested in a participation in loans
under subsection (a) even though the certificate representing the
participation in loans is not insured by the Bank Insurance Fund of
the Federal Deposit Insurance Corporation.
(c) A fiscal officer or county treasurer described in subsection (a)
may lend any securities acquired under this section or section 2 of
this chapter. However, securities may be lent under this subsection
only if the agreement under which the securities are lent is
collateralized by:
(1) cash; or
(2) interest bearing obligations that are issued by, fully insured
by, or guaranteed by the United States, an agency of the United
States government, a federal instrumentality, or a federal
government sponsored enterprise in excess of the total market
value of the loaned securities.
As added by P.L.44-1990, SEC.6. Amended by P.L.8-1991, SEC.3;
P.L.29-1992, SEC.4; P.L.57-1993, SEC.5; P.L.18-1996, SEC.15;
P.L.46-1997, SEC.11.
IC 5-13-9-4
Deposit, investment, or reinvestment of funds in transaction
accounts; certificates of deposit; deposit accounts
Sec. 4. (a) Each officer designated in section 1 of this chapter may
deposit, invest, or reinvest any funds that are held by the officer and
available for investment in transaction accounts issued or offered by
a designated depository of a political subdivision for the rates and
terms agreed upon periodically by the officer making the investment
and the designated depository.
(b) The investing officer making a deposit in a certificate of
deposit shall obtain quotes of the specific rates of interest for the
term of that certificate of deposit that each designated depository will
pay on the certificate of deposit. Quotes may be solicited and taken
by telephone. A memorandum of all quotes solicited and taken shall
be retained by the investing officer as a public record of the political
subdivision under IC 5-14-3. If the deposit is not placed in the
designated depository quoting the highest rate of interest, the
investing officer shall:
(1) place the deposit in the depository quoting the second or
third highest rate of interest; and
(2) note the reason for placing the deposit on the memorandum
of quotes.
(c) If all of the designated depositories of a political subdivision
decline to issue or receive any deposit account, or to issue or receive
the deposit account at a rate of interest equal to the highest rate being
offered other investors, investments may be made in the deposit
accounts of any financial institution designated for state deposits as
a depository by the state board of finance under IC 5-13-9.5.
As added by P.L.19-1987, SEC.11. Amended by P.L.50-1988, SEC.1;
P.L.44-1990, SEC.7; P.L.57-1993, SEC.6; P.L.18-1996, SEC.16;
P.L.46-1997, SEC.12; P.L.173-2003, SEC.2; P.L.115-2010, SEC.8.
IC 5-13-9-5
Authorization to invest in certificates of deposit; quotes from
depositories
Sec. 5. (a) The board of county commissioners of each county,
and the fiscal body of each political subdivision other than a county,
may by ordinance or resolution authorize the investing officer of
each, respectively, to invest in certificates of deposit of depositories
that have not been designated by the local board of finance of either
but have been designated by the state board of finance as a
depository for state deposits under IC 5-13-9.5. An ordinance or a
resolution adopted under this subsection must provide that the
authority granted in the ordinance or resolution expires on a date that
is not later than two (2) years after the date the ordinance or
resolution is adopted.
(b) With respect to any money to be invested in a deposit account
under subsection (a), the investing officer shall solicit quotes for the
certificates of deposit from at least three (3) depositories. If only one
(1) depository has been designated for the political subdivision by its
local board of finance, a quote must be solicited from that
depository. If two (2) or more depositories have been designated for
the political subdivision by its local board of finance, at least two (2)
quotes must be solicited from the depositories thus designated. The
quotes may be solicited and taken by telephone. A memorandum of
all quotes solicited and taken shall be retained by the investing
officer as a public record of the political subdivision under
IC 5-14-3.
(c) If a deposit is not placed in the designated depository quoting
the highest rate of interest, the investing officer shall follow the
procedures and priority for placing deposits that are set forth in
section 4 of this chapter and note the reason for placing the deposit
on the memorandum of quotes.
As added by P.L.19-1987, SEC.11. Amended by P.L.47-1991, SEC.1;
P.L.18-1996, SEC.17; P.L.46-1997, SEC.13; P.L.115-2010, SEC.9.
IC 5-13-9-5.3
Authorization to invest in certificates of deposit; conditions
Sec. 5.3. (a) In addition to the authority to invest in certificates of
deposit under section 5 of this chapter, and notwithstanding any
other law, the board of county commissioners of each county, and the
fiscal body of each political subdivision other than a county, may by
ordinance or resolution authorize the investing officer of each,
respectively, to invest public funds in certificates of deposit in
accordance with the following conditions:
(1) The funds are initially invested through a depository that is
selected by the investing officer.
(2) The selected depository arranges for the deposit of the funds
in certificates of deposit in one (1) or more federally insured
banks or savings and loan associations, wherever located, for
the account of the county or political subdivision.
(3) The full amount of the principal and any accrued interest of
each certificate of deposit are covered by insurance of any
federal deposit insurance agency.
(4) The selected depository acts as a custodian for the county or
political subdivision with respect to the certificates of deposit
issued for its account.
(5) At the same time that the county's or political subdivision's
funds are deposited and the certificates of deposit are issued,
the selected depository receives an amount of deposits covered
by insurance of any federal deposit insurance agency from
customers of other institutions, wherever located, at least equal
to the amount of the funds invested by the county or political
subdivision through the selected depository.
(b) Public funds invested in accordance with subsection (a) are
not subject to any security or pledging requirements that may
otherwise be applicable to the deposit or investment of public funds.
As added by P.L.115-2010, SEC.10.
IC 5-13-9-5.6
Final maturity
Sec. 5.6. Except for investments allowed under section 2(f) or
2(g) of this chapter, investments made under this chapter must have
a stated final maturity of not more than:
(1) five (5) years for a conservancy district located in a city
having a population of more than four thousand six hundred
fifty (4,650) but less than five thousand (5,000);
(2) five (5) years for investments made from a host community
agreement future fund established by ordinance of a town with
a population of more than six thousand three hundred (6,300)
but less than ten thousand (10,000) located in a county having
a population of more than one hundred thousand (100,000) but
less than one hundred five thousand (105,000); or
(3) two (2) years for a fund or political subdivision not
described in subdivision (1) or (2);
after the date of purchase or entry into a repurchase agreement.
As added by P.L.18-1996, SEC.18. Amended by P.L.54-1999, SEC.2;
P.L.212-1999, SEC.2; P.L.170-2002, SEC.15.
IC 5-13-9-6
Interest received from investment; deposit; receipt; reinvestment;
disposition
Sec. 6. (a) All interest derived from an investment by a political
subdivision or by any other local public officer under the authority
granted by section 3 of this chapter shall be deposited, except as
otherwise provided by law, in the general fund of the investment
authority or in any other fund its governing body designates
specifically or by rule, subject to the modifications and limitations
in this section.
(b) Interest from the following investments shall be receipted as
follows:
(1) Interest from investments of funds of a political subdivision
that are traceable to United States government funds must be
receipted to the fund of which they are a part, if required by
federal law or regulation.
(2) Interest from investments of funds controlled by court
orders must be receipted to that fund unless otherwise
designated by the court order.
(c) Each county treasurer, if authorized by the board of county
commissioners, may invest tax collections under this chapter pending
distribution of the collections to political subdivisions. These
investments may not:
(1) exceed the amount available after giving consideration to
taxes which may need to be advanced to any political
subdivision; or
(2) be made in deposit accounts or repurchase agreements, the
maturity dates of which are later than the time when the tax
collections are required by law to be distributed to political
subdivisions.
(d) The interest received on the investments made under
subsection (c) shall be receipted to the county general fund or any
other fund from which expenses incurred in the maintenance of
county highways may be paid. The county fiscal body (as defined in
IC 36-1-2-6) shall determine the allocation of this interest among the
general fund and the various highway funds into which the interest
may be deposited.
(e) Any political subdivision may apply the interest derived from
the investment of the proceeds from bonded indebtedness or local tax
levies to the appropriate redemption bond interest or sinking fund for
the bonded indebtedness.
(f) If meter deposits of a municipally owned utility are invested,
the interest earned on the investment may be applied to and used in
the operation or depreciation fund of the municipally owned utility
as determined by its governing body.
(g) Interest from the investment of the public funds of a political
subdivision may not be paid personally or for the benefit of any
public officer.
As added by P.L.19-1987, SEC.11. Amended by P.L.68-1989, SEC.1;
P.L.18-1996, SEC.19.
IC 5-13-9-7
Repealed
(Repealed by P.L.18-1996, SEC.33.)
IC 5-13-9-8
Service charge to depository
Sec. 8. Any investing officer of a political subdivision that makes
a deposit in any deposit or other account may be required to pay a
service charge to the depository in which the funds are deposited, if
the depository requires all customers to pay the charge for providing
that service. However, the service charge imposed must be
considered in the computation of the interest rate for determining
which depositories are entitled to investments as prescribed by
sections 4 and 5 of this chapter. If the total service charge cannot be
computed before the investment, the investing officer shall estimate
the service charge and adjust the interest rate based on this estimate.
The service charge may be paid by direct charge to the deposit or
other account or in any other manner mutually agreed upon by the
investing officer and the depository.
As added by P.L.19-1987, SEC.11. Amended by P.L.18-1996,
SEC.20.
IC 5-13-9-8.5
Designation as public funds
Sec. 8.5. Funds deposited in deposit accounts in accordance with
this chapter and interest earned or accrued on the funds are public
funds and are covered by the insurance fund.
As added by P.L.18-1996, SEC.21.
IC 5-13-9-9
Prohibited acts
Sec. 9. An officer designated in section 1 of this chapter may not
do the following:
(1) Purchase securities on margin.
(2) Open a securities margin account for the investment of
public funds.
As added by P.L.72-1995, SEC.5.
IC 5-13-9-10
County joint investment fund; participating political subdivisions;
written master agreement; administration of board; interest
payments
Sec. 10. (a) The investing officers of two (2) or more political
subdivisions located within a county may establish a joint investment
fund by entering into a written master agreement that defines the
rights and obligations of the participating political subdivisions.
(b) An investing officer of a political subdivision that enters into
a written master agreement under subsection (a) may pay funds that
are held by the investing officer and that are available for investment
into the joint investment fund.
(c) The fund shall be administered by a board, which must be
comprised of the investing officer of each of the participating
political subdivisions and which must be an instrumentality of the
participating political subdivisions. Each officer of a political
subdivision located within the county who is designated in section 1
of this chapter may pay funds that are held by the officer and
available for investment into a joint fund known as a joint investment
fund. The fund is administered by a board comprised of the investing
officer of each of the participating political subdivisions and is an
instrumentality of the participating political subdivisions.
(d) A joint investment fund must be invested and reinvested as a
separate and individual fund. A joint investment fund may be
invested or reinvested only in investments that are permitted for
political subdivisions by this chapter.
(e) A written master agreement under subsection (a) must provide
the following:
(1) A political subdivision may participate in a joint investment
fund only with the written authorization of its local board of
finance.
(2) A political subdivision may participate in a joint investment
fund only if its legislative body approves the written master
agreement.
(3) Subject to subsection (d), the board of a joint investment
fund shall establish written policies for the investment and
reinvestment of joint investment funds in the manner provided
by IC 30-4-3-3.
(4) A fund shall be invested and reinvested as prescribed in
subdivision (3).
(5) A custodian bank or trust company located in Indiana must:
(A) be selected and contracted by the board of a joint
investment fund to hold the securities and other investments
of the joint investment fund;
(B) collect the income and other receipts from the securities
and other investments; and
(C) provide any other services appropriate and customary for
a custodian;
subject to the direction of the board of a joint investment fund.
(6) The board of a joint investment fund may select and contract
with a fund administrator to provide investment advice to the
board and any other services determined by the board to be
appropriate and necessary for the efficient administration and
accounting of the joint investment fund. The fund administrator
shall agree to recommend only securities and other investments
as prescribed in the written policies established by the board in
rendering investment advice to the board and shall agree to be
responsible, accountable, and liable for any breach of this
provision. The fund administrator must have experience in the
investment of public funds for governmental entities and must
be either of the following:
(A) A financial institution located in Indiana.
(B) Registered as an investment adviser with the United
States Securities and Exchange Commission under the
Investment Advisers Act of 1940, as amended (15 U.S.C.
80a-9 et seq.), with public funds under management in the
amount of at least one hundred million dollars
($100,000,000).
(7) A joint investment fund must be audited at least annually by
an independent auditing firm, with a copy of the audit provided
to each participating political subdivision.
(8) The administrative expenses of a joint investment fund,
including fees for the fund administrator, custodian, auditor,
and other professional services, must be paid from the fund's
interest earnings.
(9) The interest earnings that exceed the administrative
expenses of a joint investment fund must be credited to each
political subdivision participating in the joint investment fund
in a manner that equitably reflects the differing amounts and
terms of the political subdivision's investment in the joint
investment fund.
(10) Each participating political subdivision shall receive
reports, including a daily transaction confirmation reflecting
any activity in the political subdivision's account and monthly
reports reflecting its investment activity in the joint investment
fund and the performance and composition of the joint
investment fund itself.
(11) The board of a joint investment fund shall meet at least
annually to review the operation and performance of the joint
investment fund, the custodian, the fund administrator, the
auditor, and any other professional retained by the board.
(12) The board of a joint investment fund shall provide for any
other policies that are necessary for the efficient administration
and accounting of the joint investment fund and are consistent
with the law governing the investment, management, deposit,
and safekeeping of public funds of political subdivisions.
As added by P.L.224-2003, SEC.276. Amended by P.L.3-2008,
SEC.27; P.L.115-2010, SEC.11.
IC 5-13-9-11
Local government investment pool
Sec. 11. (a) As used in this section, "investment pool" means the
local government investment pool established by subsection (b).
(b) The local government investment pool is established within
the office and custody of the treasurer of state.
(c) An officer designated in section 1 of this chapter may pay any
funds held by the officer into the investment pool for the purpose of
deposit, investment, and reinvestment of the funds by the treasurer
of state on behalf of the unit of government paying the funds into the
investment pool.
(d) The treasurer of state may pay state funds into the investment
pool for the purpose of deposit, investment, and reinvestment of the
state funds.
(e) The treasurer of state shall invest the funds in the investment
pool in the same manner, in the same type of instruments, and subject
to the same limitations provided for the deposit and investment of
state funds by the treasurer of state under IC 5-13-10.5.
(f) The treasurer of state:
(1) shall administer the investment pool; and
(2) may contract with accountants, attorneys, regulated
investment advisors, money managers, and other finance and
investment professionals to make investments and provide for
the public accounting and legal compliance necessary to ensure
and maintain the safety, liquidity, and yield of the investment
pool.
(g) The treasurer of state shall establish and make public the
policies that the treasurer of state will follow to ensure the efficient
administration of and accounting for the investment pool. The
policies must provide the following:
(1) There is not a minimum time for which funds paid into the
investment pool must be retained by the investment pool.
(2) The administrative expenses of the investment pool shall be
accounted for by the treasurer of state and shall be paid from
the earnings of the investment pool.
(3) The earnings of the investment pool in excess of the
administrative expenses of the investment pool shall be credited
to the state and each unit of government participating in the
investment pool in a manner that equitably reflects the different
amounts and terms of the state's investment and each unit's
investment in the investment pool.
(4) There is not a limit on the number of accounts that the state
or a unit of government participating in the investment pool
may establish within the investment pool.
(5) The state and each unit of government participating in the
investment pool shall receive electronic or paper reports,
including:
(A) a daily transaction confirmation, reflecting any activity
in the state's or unit's account; and
(B) a monthly report showing:
(i) the state's or unit's investment activity in the investment
pool; and
(ii) the performance and composition of the investment
pool.
(6) The investment pool shall be audited at least annually by an
independent auditing firm, with an electronic or a paper copy of
the audit provided to the state and each unit of government
participating in the pool.
(7) No less than fifty percent (50%) of funds available for
investment shall be deposited in banks qualified to hold
deposits of participating local government entities.
(h) A unit of government participating in the investment pool may
elect to have any funds due from the state wired directly to the
custodian bank of the investment pool for credit to the unit's
investment pool account by submitting in writing a request to the
auditor of state to wire the funds as directed. An election made by a
unit of government under this subsection may be revoked at any time
by the unit by submitting in writing a request to the auditor of state
to cease wiring the funds as previously directed by the unit.
As added by P.L.117-2007, SEC.1.